wealthschema/archetypes/mv-03-disabled-veteran
MV-03Military ExpandedAccumulationlow tax complexity

Disabled Veteran

Veteran with service-connected disability rating, VA disability compensation (tax-free), CRDP or CRSC, VA healthcare, and adaptive housing grant.

MV-03 is the testing surface where a portion of household income is statutorily tax-free, the CRDP/CRSC offset rules govern pension interaction, and adaptive-housing grants and VA healthcare displace conventional benefits assumptions.

Age Range
25–55
Net Worth
$0–$100k
Cohort
Military Expanded

About this archetype

MV-03 represents a veteran household built around service-connected disability compensation rather than around employment income alone. Two structural facts dominate the modeling problem. First, VA disability compensation is excluded from gross income under 38 USC §5301 and IRC §104(a)(4) — it does not appear on a W-2 or 1099, does not count for AGI, does not count for ACA premium tax credits in the standard way, and is protected from most garnishment. Software that infers benefits eligibility from AGI alone will systematically underestimate this household's true cash flow. Second, for retirees with both a military pension and a disability rating, Concurrent Retirement and Disability Pay (CRDP) restores the dollar-for-dollar offset for ratings of 50% or higher, while Combat-Related Special Compensation (CRSC) handles the combat-connected subset under a different formula. Both run in parallel with regular Social Security Disability Insurance eligibility when applicable, creating a multi-stream income picture no civilian disability archetype reproduces.

The cash-flow story is one of stability anchored by an inflation-indexed federal stream, alongside earned income that may be limited by the disability itself or by Total Disability based on Individual Unemployability (TDIU) status. Median combined income is $98k with $211k net worth, 46% are homeowners, and 77% carry dependents — a meaningfully higher dependent-load than MV-02 — reflecting the family structure of veterans receiving compensation with dependents added to the rating. Education funding appears in 10 of 13 households, often because Post-9/11 GI Bill transferability and Chapter 35 Dependents' Educational Assistance create real funding paths the planning software needs to recognize as assets.

What distinguishes MV-03 from the rest of the disability and military cohorts is the specific federal-benefit braid: VA disability compensation (tax-free, inflation-indexed, with dependents adjustment), CRDP or CRSC interactions with any military retirement pay, VA healthcare in place of (or alongside) Medicare/employer plans, adaptive-housing grants (SAH/SHA) that change the home-financing surface, and property-tax exemptions in many states for veterans at 100% or TDIU. None of those features appear on a civilian SSDI household, and none of them appear in MV-02's pension-and-TSP-only signature.

Defining characteristics

  • VA disability compensation
    Tax-free under IRC §104(a)(4), inflation-indexed annually, with monthly amounts that scale by rating (10%–100%) and by number of dependents. Not reportable on Form 1040.
  • CRDP / CRSC interaction
    For veterans with both a military pension and a disability rating, CRDP eliminates the offset at ratings of 50%+; CRSC compensates separately for combat-related portion. The two cannot both be elected — software must model the comparison.
  • VA healthcare
    Service-connected conditions are treated through VA, and Priority Group assignment governs cost-sharing. Premium tax credit calculations under the ACA need to handle VA coverage as minimum essential coverage where applicable.
  • Adaptive housing grant
    Specially Adapted Housing (SAH) and Special Housing Adaptation (SHA) grants — up to ~$117k and ~$23k respectively as of synthesis — affect home equity and renovation financing. The funding-fee waiver on VA loans for service-connected disability also applies.
  • Property tax exemptions
    Many states provide partial or full property-tax exemptions at 100% or TDIU ratings — TX is full exemption at 100%, FL provides homestead reductions, and so on. Cash-flow modeling needs to handle the state-specific overlay.
  • Dependents-heavy structure
    10 of 13 corpus households (77%) carry one or more dependents, and education funding appears in 10 of 13 goals — Post-9/11 GI Bill transferability and Chapter 35 DEA are live planning levers.

Corpus signature

n = 13 households

Aggregated across the 13 MV-03 households in the shipped v3 corpus corpus. Numbers describe the corpus, not population claims.

Median income
$98k
p25–p75 $84k–$110k
Median net worth
$211k
mean $209k
Liquid net worth
$91k
median
Investable assets
$117k
median
Income distribution
$75k–90k
5
$90k–105k
4
$105k–125k
4
Net-worth distribution
$-59k–91k
3
$91k–241k
4
$241k–425k
6
Goals across the corpus
Retirement13 / 13
Education funding10 / 13
Home purchase7 / 13
Debt payoff7 / 13
Emergency fund4 / 13
Liability composition
Credit cards13 / 13
Student loans7 / 13
Mortgages6 / 13
Auto loans5 / 13
  • 6 of 13 (46%) are homeowners; the remainder rent.
  • TX, MN, CO account for 5 of 13 households — 38% of the corpus.
  • Median adult-member age is 41 (range 31–56 across primaries and spouses).
  • 10 of 13 (77%) carry one or more dependents.

Representative household

MV-03-seed-10
Justin G.Married filing jointly·Atlantic City-Hammonton, NJ

Justin and Rachel are at the upper end of the MV-03 net-worth distribution ($398k vs corpus median $211k) and an outlier age (53/51) — the post-service second-career profile rather than the early-rating case. Combined reported income of $98k almost certainly understates true cash flow because tax-free VA disability compensation is not included; this is the diagnostic bug surface for any software that treats AGI as a proxy for spending capacity. On track for a $66k home purchase, behind on a $704k education-funding target (likely GI Bill transferability is the missing asset).

Combined income
$98,220
Net worth
$398,468
Liquid NW
$193,288
Ages
53 / 51
Top goals on this household
Home purchase
$65,599
Education funding
$703,550
Retirement
$1,650,000

Schema fields covered

Every MV-03 household ships with — at minimum — these JSON fields populated. The full schema is documented in the data set you purchase.

members[].age
income.combined_gross
net_worth.total
filing_status
longitudinal.monthly[].net_cash_flow
longitudinal.monthly[].savings_rate
stress.scenarios[]
liquidity.months_of_expenses

Who builds against this archetype

Veteran-serving financial institutions and VA-lender platforms use MV-03 to validate underwriting logic that has to recognize tax-free disability income as qualifying without converting it through the standard gross-up rules. Benefits-eligibility software for ACA marketplace plans, Medicaid, and state property-tax exemptions tests against this corpus to catch the VA-compensation-is-not-AGI bug. Tax-preparation vendors use MV-03 to exercise the §104(a)(4) exclusion path, CRDP/CRSC reporting on Form 1099-R from DFAS, and the interaction with SBP elections when the veteran is also a military retiree.

Testing scenarios this corpus is calibrated for

  • 01Mortgage underwriting flows that gross up tax-free VA disability income correctly (typically 125% of nominal) for DTI calculations on conventional or FHA loans alongside VA-loan paths.
  • 02ACA premium tax credit eligibility calculations where VA disability compensation is excluded from MAGI but VA healthcare counts as minimum essential coverage.
  • 03CRDP vs CRSC election comparison tools for combat-connected veterans with a military pension and a 50%+ rating, including the year-over-year benefit projection.
  • 04State property-tax exemption logic (TX full exemption at 100%, FL homestead reduction, CA disabled veteran exemption tiers) layered onto homeowner cash-flow models.
  • 05Chapter 35 Dependents' Educational Assistance and Post-9/11 GI Bill transferability as 529-equivalent funding assets in goal-based planning software.
  • 06Adaptive housing grant (SAH/SHA) modeling as a one-time non-loan inflow to the home-equity ledger, with eligibility tied to specific service-connected conditions.

Edge cases and what's not in this corpus

MV-03 is calibrated to veterans with a service-connected rating that materially affects cash flow and benefits eligibility — typically 30% and higher, with the corpus weighted toward 50%+ where CRDP triggers. It is not the active-duty enlisted formation household (F-05) and it is not the career officer pension case (MV-02), even though some MV-03 households also draw a pension. Civilian disability cases — private LTD policies, SSDI without VA, workers' compensation — belong in HC-02, which has a completely different tax surface (LTD often taxable, SSDI sometimes taxable above thresholds). Households built on a survivor's benefit (DIC) rather than the veteran's own compensation are out of scope; H-04 is closer for widow/widower planning, though without the federal-benefits braid.

Calibration notes

Compensation amounts during v3 synthesis were anchored to published VA disability compensation tables for each rating tier (10%–100%) with dependent adjustments per the 38 CFR Part 3 schedule, and total household income reflects the addition of earned wages from employment subject to TDIU constraints where modeled. State distribution leans toward TX, MN, and CO — three states with meaningful veteran populations and a mix of property-tax-exemption regimes useful for testing. The corpus does not model rating changes over time, TDIU adjudication events, or appeals (BVA / Court of Appeals for Veterans Claims) — those are dynamic conditions a buyer would layer on. Per CLAUDE.md §9 the v3 corpus is frozen and not regenerable from current code.

How this differs from related archetypes

Frequently asked questions

What does the MV-03 archetype represent?+

MV-03 — Disabled Veteran represents a veteran household where service-connected disability compensation is a material component of household cash flow. The corpus captures the federal-benefits braid (VA compensation, CRDP/CRSC if applicable, VA healthcare, adaptive housing grants, state property-tax exemptions) that distinguishes this household from a civilian disability case.

Is VA disability compensation treated as taxable income in the corpus?+

No. VA disability compensation is excluded from gross income under IRC §104(a)(4) and is reflected in the corpus as a non-taxable cash-flow component. Buyers whose software uses AGI as a proxy for total income should validate against this corpus to catch the under-counting bug.

How does MV-03 differ from HC-02 (Disability Claimant — SSDI/LTD)?+

HC-02 is the civilian disability case: Social Security Disability Insurance and/or a private long-term disability policy, with no VA system involvement. Tax treatment differs (SSDI partially taxable above income thresholds, LTD often fully taxable, VA disability compensation tax-free), and the healthcare picture differs (Medicare after 24 months on SSDI vs VA Priority Group assignment). Choose MV-03 when the federal-benefits braid is the testing surface.

Does the corpus model the CRDP vs CRSC election for retirees?+

The corpus represents households where the election has been made and the resulting income stream is stable; it does not encode the year-by-year comparison logic needed for the election decision itself. Software building the election-comparison tool should use MV-03 as a balance-sheet starting point and layer the comparison engine on top.

Which synthetic wealth data sets include MV-03 households?+

MV-03 is tagged for B04, B14, B18, B23, B25, and B27 — covering cash-flow / debt, employee-benefits-adjacent scenarios, insurance, healthcare, military-specific testing, and behavioral overlays. See the right-hand sidebar for the bundles that ship MV-03 households.

Is the MV-03 corpus regenerable from current code?+

No. The shipped 1,451-household v3 corpus is frozen as of synthesis; drift was confirmed on 2026-05-09. Per CLAUDE.md §9, v3 MV-03 households should be treated as a static reference dataset rather than as a regenerable output.

Get this archetype's data

Download households matching this archetype as part of a Wealth Data Set.

Browse Data Sets

Life Stage

Formation
Accumulation
Preservation
Distribution
Transfer